Palladium‐catalyzed C(sp
2
)H functionalization is a powerful tool for the manipulation and synthesis of complex pharmachemical, agrochemical, and medicinal molecules. In this article, we survey the general modes of Pd‐catalyzed CH activation. From computational perspective, we dissect the roles of ligands (such as carboxylate‐type ligands, pyridone‐based ligands, and mono‐protected amino acids), solvents, and silver additives in crucial CH activation event facilitated via generally accepted concerted metalation deprotonation (CMD) mechanism. In addition, we present the computational evidence for mono‐ vs multinuclearity of palladium catalysts in C(sp
2
)H functionalization. Template‐assisted regioselective C(sp
2
)H functionalization via ring strain control is also discussed.